Kelly and Sam Morse

Kelly and Sam Morse have invested $500,000 in K&S Place. Their projected costs and activities are as follows: Variable Cost Monthly Fixed Costs Monthly Covers Served 63% $30,000 10,000 Answer the following questions below. Show your work. 1. If a monthly profit of $5000 must be earned in addition to the fixed costs, what must the average check be? 2. What would you want to compare the result you calculated with so see if it is reasonable to achieve that check? Kelly and Sam Morse have invested $500,000 in K&S Place. Their projected costs and activities are as follows: Variable Cost Monthly Fixed Costs Monthly Covers Served 63% $30,000 10,000 Answer the following questions below. Show your work. 1. If a monthly profit of $5000 must be earned in addition to the fixed costs, what must the average check be? 2. What would you want to compare the result you calculated with so see if it is reasonable to achieve that check